Government Services
January 18, 2007
The following is being distributed at the request of the Public
Utilities Board�s Petroleum Pricing Office (PPO):
Further Declines Seen for Maximum
Fuel Prices
The Public Utilities Board, through its Petroleum
Pricing Office, lowered the maximum prices for all regulated fuels in
Newfoundland and Labrador (NL) as per its scheduled adjustment effective
12:01 a.m. Thursday, January 18, 2007, except in regions under a price
freeze.
Maximum gasoline prices in this province decreased by 3.0/3.1 cents per
litre (cpl) � depending on the HST rounding impact. This is the third
decrease in as many weeks, and brings maximum prices in NL to a 22-month
low as the average pricing behaviour on NYMEX (New York Mercantile
Exchange) for gasoline from January 10-16, 2007 continued its downward
trend. Other fuel products haven�t changed in price since the last
scheduled announcement January 4, 2007, and they too will see further
declines at this time, including:
- ultra low-sulphur diesel in Newfoundland by
3.7/3.8 cpl and low-sulphur diesel in Labrador by 3.5/3.6 cpl;
- No. 2 blend furnace oil by 3.59 cpl;
- stove oil by 3.32 cpl; and,
- residential propane used for home heating
purposes by 1.0 cpl.
The commodity markets have seen some rebounds
recently; however, they have thus far been short-lived. Helping to lower
refined fuels prices, such as that for gasoline and distillates (diesel
and furnace/stove oil), has been the steady rebuilding of these
products� inventories. Demand is expected to remain solid, even though
recent warmer-than-average temperatures continued throughout the
northeastern seaboard (the region where consumption for heating fuels is
traditionally highest).
Aside from the resolution of a dispute between Russia and Belarus, which
led to a cut in fuel supplies to central Europe, geopolitical events
have not received as much attention as in the past, which helped ease
concerns about fuel supply availability. However, factors (such as
Iran�s nuclear activity, tension in the Middle East, and violence in the
oil-rich Niger Delta) still exist and have the potential to resurge and
impact prices at any time. As well, OPEC (Organization of Petroleum
Exporting Countries) has stated, though not all members agreed, that the
current levels of production are sufficient and do not need additional
cuts.
BACKGROUNDER
Regulation schedule: The board currently sets maximum prices for
petroleum products every two weeks. Every Thursday following a scheduled
adjustment, consumers will experience either no change in price or a
change triggered by the criteria being met for the interruption formula.
More information can be found on the board�s Web site at
www.pub.nl.ca.
1. Heating Fuels � Residential Propane � Maximum Tank
Wagon Prices � Effective January 18, 2007.
2. Automotive Fuels � Maximum Retail Pump Prices � Effective January 18,
2007.
3. Heating Fuels � Maximum Tank Wagon (or ** Tank Farm) Prices �
Effective January 18, 2007.
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Media contact:
Michelle Hicks
Communications
1-866-489-8800, 709-489-8837
mhicks@pub.nl.ca
2007 01 18
1:25 p.m.
